The US crypto ETF market faces new delays as the SEC extends reviews for major digital asset funds, signaling its measured approach to regulation.
Meanwhile, incremental progress appears with the SEC’s official acknowledgment of a new TRX staking ETF, introducing cautious optimism for industry stakeholders.
SEC Delays on Major Crypto ETFs
In a recent SEC filing, the Commission announced it would postpone its decision on CoinShares’ proposed XRP ETF, pushing the review ahead of its second deadline on May 26. Likewise, the agency has delayed its ruling on CoinShares’ application to list and trade shares of its Litecoin ETF on the Nasdaq exchange.
However, it officially recognized Canary Capital’s product offering exposure to staked TRX, signaling slight progress in the regulatory pipeline. This would be the first exchange-traded fund offering exposure to TRX with staking features.
This formal recognition is not immediate approval. Still, it is significant because it signals the SEC is willing to assess new types of digital asset ETFs, including those that incorporate staking for yield.
The CoinShares XRP ETF would exclusively hold XRP and cash, tracking the token’s value while undergoing a thorough regulatory examination. During this review, the SEC is inviting public comments to determine compliance with Exchange Act requirements. No approval or disapproval has been issued—only a deeper move into formal review.
“As expected, more delays on crypto ETFs dropped today. Delays include BitwiseInvest & CoinSharesCo XRP ETFs. Delay on Litecoin ETF Filing. Delay on Fidelity’s In-kind Bitcoin filing. On the more positive side: SEC acknowledged @CanaryFunds’s staked TRX filing,” ETF analyst James Seyffart posted on X.
The analyst previously noted that delays on spot crypto ETFs were expected. According to Seyffart, any potential early approvals from the SEC are unlikely to materialize before late June or early July. He even set a more realistic timeline for approvals, pointing to early in the fourth quarter.
The latest developments come as the 21Shares XRP ETF and Grayscale Dogecoin ETF are facing extended timelines. The Commission also announced similar delays for five different Solana ETF applications recently, adding to the disappointment.
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